Chart of the Day - Wednesday, March 8th, 2023

Japan weekly, prob most interesting weekly chart in equities in at least a year. pic.twitter.com/sR7KWB2CKN

— Arun S. Chopra CFA CMT? (@FusionptCapital) March 8, 2023

Today’s Chart of the Day was shared on Twitter by Arun Chopra (@FusionptCapital). The Japanese asset price bubble in the 1980s was one of the most epic speculative manias in the history of public markets. It's been more than three decades since the Nikkei peaked in the early 90s, and it still hasn't revisited the bubble highs. It's been a slow repair process, but Arun points out that the Nikkei is starting to look interesting again. It declined last year along with most global markets, but it held up relatively well compared to the major US indices. It successfully retested its pre-covid highs last year and it's currently attempting to breakout out of an 18-month downtrend line. When you zoom out on a monthly chart, last year's decline resembles a bull flag consolidation within an uptrend. It's still about 25% below the bubble highs from the '90s, but it's built a massive base over the past 30 years and it continues to act constructively.